U.S. Said to Plan Approval Today for 10 Banks to Repay TARP

June 9 (Bloomberg) -- The Treasury is preparing to announce today it will let 10 banks buy back government shares, people familiar with the matter said, signaling confidence some of the largest U.S. lenders wonât again need a taxpayer rescue.

JPMorgan Chase & Co. is among those cleared to repay Troubled Asset Relief Program funds, a person said on condition of anonymity. Goldman Sachs Group Inc., American Express Co. and State Street Corp. are also among those that have sold shares and debt unguaranteed by the government, demonstrating they can raise funds without federal aid.

The approvals may relieve investor concerns about government ownership after a popular outcry against bailouts for Wall Street. At the same time, they contrast with warnings from International Monetary Fund chief Dominique Strauss-Kahn and others that the financial system remains distressed.

âNone of this means that weâre out of the woods yet; thereâs a lot of work that the banks have to do and the regulators have to do,â said Richard Spillenkothen, a director at Deloitte & Touche LLP in New York who served as the Federal Reserveâs head of bank supervision from 1991 until 2006.

The Fed yesterday also approved capital-raising plans at the 10 banks judged to have shortfalls after last monthâs stress tests on the 19 biggest U.S. lenders. That list includes Citigroup Inc. and Bank of America Corp., firms that have had more than one round of federal rescues.

Compensation Guidelines

On June 10, the Treasury will likely release its guidelines for executive compensation at banks that retain government shares, a person familiar with the matter said.

Treasury Secretary Timothy Geithner may be asked about the TARP repayments, compensation rules and the outlook for financial markets in a Senate Appropriations Committee hearing at 10:30 a.m. today in Washington.

Nine of the 19 banks subjected to stress tests by U.S. regulators were told last month they needed no additional capital to withstand a deeper economic downturn. Officials later told some of the banks, including JPMorgan and American Express, they still needed to boost their common equity.

The number of banks likely to be allowed to retire government shares indicates the Treasury will receive more than the $25 billion of repayments that the department anticipated this year. JPMorgan alone received $25 billion of TARP funds last year and Goldman Sachs got $10 billion. American Express has received $3.4 billion, Bank of New York Mellon Corp. has taken $3 billion and State Street has $2 billion.

No, I do not depend on alms from US taxpayers. Anyway, If my family name would be "Blankfein", "Lewis", "Dimon", "Kovacevich", "Mack" and so on, I would step down from my post as CEO. But US bankers still not ashamed of oneself to do the right thing !